In the report presented to the board of directors, opinions are voiced regarding the responsibility of the recent falls of quality. It is suggested that the qualification of the purchasing department’s manager fall short on what is required, which leads to inefficient practices. In turn, the author feels that a more scientific minded individual from the research department would be a suitable candidate to handle the affairs more efficiently. While, the information provided should be taken seriously, there are obvious defects with the line of reasoning that should be analyzed as well.
Firstly, the author suggests that the falling revenues can be explained by the delays in manufacturing simply because the dates coincide. While, this certainly could be a reason, there is no proof presented. Additionally, there could be varying factors that could lead to reduced revenues that have little to do with manufacturing. Competition, availability of substitutes and market conditions all have an effect on the profitability of the firm. Unless a clear correlation between the revenue and manufacturing delays, or even the effects of internal failings, is researched by gathering evidence, such assumptions should not be made.
The author further goes on to say that poor planning in purchasing metals is plays a huge role in the manufacturing delay. This accusation is backed with no research in the matter. Purchasing metals is one process of manufacturing and all departments need to be looked at before a conclusion is drawn. Purchasing metals could simply be delayed due to the supplier’s own delay. In such a case, the purchasing department cannot be faulted and the company could simply change their supplier to fix the problem.
Using the arguments above, the author recommends that the purchasing department’s manager should be transferred to another department. It is stated that the manager is a capable with good business knowledge, psychology and sociology, and would do well in the sales department. However, part of being a good manager is knowing how to handle situations during problems. If the manager thought there was a problem, then he could simply delegate it to the more knowledgeable person or take help from them. However, replacing a manager with the scientist will not be suitable, as managers are more suitable for running managerial tasks. A scientist might not be able to adept to running a managerial department. Thus, his skills would fail in the purchasing department.
In conclusion, the author fails to provide a convincing argument that would convince the board of directors to enact the recommendation. A more valid argument would be backed by evidence and look at the problem in a broader way. Other departments and external environments should be looked at. Until then, any action against the purchasing department manager would be premature.